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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 92.80-2.9%3:59 PM EST

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To: Frank Wechsler who wrote (325)11/11/1997 6:22:00 PM
From: Tim Bagwell  Read Replies (2) of 6846
 
One question: could you be nice enough to tell us what WDM is?

Sure Frank. WDM stands for "wavelength division multiplexing" which just means that multiple wavelengths of light (multiple colors) are used on the same fiber. Each wavelength carries a different stream of digital data. Current systems are designed to allow either 4, 8 or 16 wavelengths or channels to be multiplexed together at one end of the fiber. The channels are seperated in a demultiplexer at the other end. WDM achieves the same goal as laying additional fiber without the expense of having to physically install more fiber underground or undersea.

A similar term DWDM stands for "dense WDM" is used to refer to newer systems that allow more than 16 channels to be multiplexed onto a single fiber. These systems are still in development but it appears that some companies are trying to push the technology to as many as 100 channels. More channels means that they are closer together in wavelength which makes it much harder and more expensive to do the seperation with current technology.

WDM has been pushed by companies like AT&T and MCI who already have fiber laid underground. The existing fiber infrastructure was designed at a different wavelength so to upgrade to WDM means significant measures must be in place to correct signal degradation in this fiber. WDM makes the network very complex and brings with it a number of challenges. This is why AT&T and MCI are years away from a fully upgraded network. By the time they get there, they may need to upgrade again and thus one wonders if continuous upgrades will become necessary as the technology advances. All of this just so they can use their existing fiber.

Qwest is installing the latest fiber and transmission equipment that does not need WDM to have sufficient bandwidth. They can, however, upgrade to WDM at a later stage when capacity warrants the expense. Qwest will have the most technically superior network of any in the world. It has been designed from the start for the correct wavelengths.

Hope that helps.

Tim
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